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HQI

HireQuestNasdaqCM:HQI Stock Report

Last Price

US$17.57

Market Cap

US$240.7m

7D

-5.3%

1Y

72.1%

Updated

19 Jan, 2022

Data

Company Financials +
HQI fundamental analysis
Snowflake Score
Valuation2/6
Future Growth1/6
Past Performance6/6
Financial Health5/6
Dividends2/6

HQI Stock Overview

HireQuest, Inc. provides on-demand and temporary staffing solutions in the United States.

HireQuest Competitors

ManpowerGroup

NYSE:MAN

US$5.8b

TrueBlue

NYSE:TBI

US$983.5m

Kelly Services

NasdaqGS:KELY.A

US$689.7m

Mastech Digital

NYSEAM:MHH

US$192.7m

Price History & Performance

Summary of all time highs, changes and price drops for HireQuest
Historical stock prices
Current Share PriceUS$17.57
52 Week HighUS$25.69
52 Week LowUS$10.00
Beta0.67
1 Month Change-14.87%
3 Month Change-8.01%
1 Year Change72.09%
3 Year Changen/a
5 Year Changen/a
Change since IPO208.25%

Recent News & Updates

Jan 19
These 4 Measures Indicate That HireQuest (NASDAQ:HQI) Is Using Debt Safely

These 4 Measures Indicate That HireQuest (NASDAQ:HQI) Is Using Debt Safely

Howard Marks put it nicely when he said that, rather than worrying about share price volatility, 'The possibility of...

Nov 16
Optimistic Investors Push HireQuest, Inc. (NASDAQ:HQI) Shares Up 28% But Growth Is Lacking

Optimistic Investors Push HireQuest, Inc. (NASDAQ:HQI) Shares Up 28% But Growth Is Lacking

HireQuest, Inc. ( NASDAQ:HQI ) shareholders have had their patience rewarded with a 28% share price jump in the last...

Shareholder Returns

HQIUS Professional ServicesUS Market
7D-5.3%-4.3%-4.6%
1Y72.1%2.6%7.7%

Return vs Industry: HQI exceeded the US Professional Services industry which returned 4.9% over the past year.

Return vs Market: HQI exceeded the US Market which returned 10.2% over the past year.

Price Volatility

Is HQI's price volatile compared to industry and market?
HQI volatility
HQI Average Weekly Movement9.2%
Professional Services Industry Average Movement6.2%
Market Average Movement6.6%
10% most volatile stocks in US Market15.7%
10% least volatile stocks in US Market2.4%

Stable Share Price: HQI is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 9% a week.

Volatility Over Time: HQI's weekly volatility (9%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
200240Richard Hermannshttps://www.hirequest.com

HireQuest, Inc. provides on-demand and temporary staffing solutions in the United States. The company provides temporary staffing services, including skilled and semi-skilled labor and industrial personnel, clerical and administrative personnel, and construction personnel. As of March 25, 2021, the company had a network of approximately 139 franchisee-owned offices in 35 states and the District of Columbia.

HireQuest Fundamentals Summary

How do HireQuest's earnings and revenue compare to its market cap?
HQI fundamental statistics
Market CapUS$240.74m
Earnings (TTM)US$11.01m
Revenue (TTM)US$19.40m

21.9x

P/E Ratio

12.4x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
HQI income statement (TTM)
RevenueUS$19.40m
Cost of RevenueUS$0
Gross ProfitUS$19.40m
ExpensesUS$8.38m
EarningsUS$11.01m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.80
Gross Margin100.00%
Net Profit Margin56.77%
Debt/Equity Ratio7.1%

How did HQI perform over the long term?

See historical performance and comparison

Dividends

1.4%

Current Dividend Yield

27%

Payout Ratio

Valuation

Is HireQuest undervalued compared to its fair value and its price relative to the market?

17.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: HQI ($17.57) is trading below our estimate of fair value ($21.35)

Significantly Below Fair Value: HQI is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: HQI is good value based on its PE Ratio (21.9x) compared to the US Professional Services industry average (23.4x).

PE vs Market: HQI is poor value based on its PE Ratio (21.9x) compared to the US market (17x).


Price to Earnings Growth Ratio

PEG Ratio: HQI is poor value based on its PEG Ratio (6.6x)


Price to Book Ratio

PB vs Industry: HQI is overvalued based on its PB Ratio (5.3x) compared to the US Professional Services industry average (2.8x).


Future Growth

How is HireQuest forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

3.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HQI's forecast earnings growth (3.3% per year) is above the savings rate (2%).

Earnings vs Market: HQI's earnings (3.3% per year) are forecast to grow slower than the US market (13% per year).

High Growth Earnings: HQI's earnings are forecast to grow, but not significantly.

Revenue vs Market: HQI's revenue (8% per year) is forecast to grow slower than the US market (9.2% per year).

High Growth Revenue: HQI's revenue (8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if HQI's Return on Equity is forecast to be high in 3 years time


Past Performance

How has HireQuest performed over the past 5 years?

22.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HQI has high quality earnings.

Growing Profit Margin: HQI's current net profit margins (56.8%) are higher than last year (49%).


Past Earnings Growth Analysis

Earnings Trend: HQI's earnings have grown significantly by 22% per year over the past 5 years.

Accelerating Growth: HQI's earnings growth over the past year (38.1%) exceeds its 5-year average (22% per year).

Earnings vs Industry: HQI earnings growth over the past year (38.1%) exceeded the Professional Services industry 33.6%.


Return on Equity

High ROE: HQI's Return on Equity (24.4%) is considered high.


Financial Health

How is HireQuest's financial position?


Financial Position Analysis

Short Term Liabilities: HQI's short term assets ($46.7M) exceed its short term liabilities ($21.8M).

Long Term Liabilities: HQI's short term assets ($46.7M) exceed its long term liabilities ($7.8M).


Debt to Equity History and Analysis

Debt Level: HQI has more cash than its total debt.

Reducing Debt: Insufficient data to determine if HQI's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: HQI's debt is well covered by operating cash flow (583.6%).

Interest Coverage: HQI earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Dividend

What is HireQuest current dividend yield, its reliability and sustainability?

1.37%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: HQI's dividend (1.37%) is higher than the bottom 25% of dividend payers in the US market (1.35%).

High Dividend: HQI's dividend (1.37%) is low compared to the top 25% of dividend payers in the US market (3.48%).


Stability and Growth of Payments

Stable Dividend: Too early to tell whether HQI's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if HQI's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (26.9%), HQI's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.5yrs

Average management tenure


CEO

Richard Hermanns (57 yo)

2.5yrs

Tenure

US$375,000

Compensation

Mr. Richard F. Hermanns has been Chairman, President. Director and Chief Executive Officer of HireQuest Inc. (formerly known as Command Center, Inc.) since July 15, 2019. Mr. Hermanns previously served as...


CEO Compensation Analysis

Compensation vs Market: Richard's total compensation ($USD375.00K) is below average for companies of similar size in the US market ($USD1.10M).

Compensation vs Earnings: Richard's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: HQI's management team is considered experienced (2.5 years average tenure).


Board Members

Experienced Board: HQI's board of directors are not considered experienced ( 2.5 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

HireQuest, Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: HireQuest, Inc.
  • Ticker: HQI
  • Exchange: NasdaqCM
  • Founded: 2002
  • Industry: Human Resource and Employment Services
  • Sector: Commercial Services
  • Implied Market Cap: US$240.744m
  • Shares outstanding: 13.70m
  • Website: https://www.hirequest.com

Number of Employees


Location

  • HireQuest, Inc.
  • 111 Springhall Drive
  • Goose Creek
  • South Carolina
  • 29445
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/19 23:44
End of Day Share Price2022/01/19 00:00
Earnings2021/09/30
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.